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Comments mixed on free broadband network in 2.1 GHz band

Comments filed with the FCC on M2Z Networks’ proposed free nationwide broadband network in the 2.1 GHz band were split into two camps, with wireless industry players united in opposition and with state and local governments and citizen organizations voicing support. Accepted for filing by the FCC in January, the M2Z application proposes a 20 MHz national broadband network in the 2155-2175 MHz band that would offer free basic service to customers in exchange for the payment of a 5% “usage” fee to the U.S. Treasury based on revenues for premium fee-based services to be offered by M2Z. While maintaining that the FCC should authorize its network outside of the spectrum auction process, M2Z has also promised to commence service within 24 months of licensing and to reach 95% of the U.S. population within ten years. In a study commissioned by M2Z, Simon Wilkie, a former FCC economist, asserted that free and paid subscription services offered by M2Z “will increase the level of broadband competition in the country, providing significant savings to U.S. consumers.” Although several House Democrats also urged the FCC to give M2Z’s proposal “every consideration,” leading wireless carriers, with the backing of wireless association CTIA, called on the FCC to reject the application on the grounds that M2Z should not receive for free spectrum that other wireless entities are required to bid on at auction. As CTIA warned that M2Z’s plan “would create a number of legal and public policy problems without effectively serving the public interest,” T-Mobile USA told the FCC that M2Z’s proposed service, “at best, competes with other broadband wireless services” and, therefore, “does not merit special treatment outside the normal licensing process.” Motorola also pointed out that consideration of M2Z’s application might be premature “as the Commission has not yet established service rules for use of the 2155-2175 MHz band.”